Global financial market turmoil, stablecoin yield products become a safe haven

In April 2025, a series of tariff policies triggered severe fluctuations in the global financial markets. The new tariff measures imposed different tax rates on major trading partners, leading to a strong market reaction. The S&P 500 saw a significant reduction in market value over a short period, setting a historic decline. The price of Bitcoin also experienced violent oscillations in the high range.

In the face of this uncertainty, the Federal Reserve has stated that it will focus on long-term data and will not intervene in the market by lowering interest rates. Several investment banks have raised the probability of a recession in the United States. How should investors respond in this turbulent environment? Low-risk yield products based on stablecoins may be a good choice, helping investors maintain stability amid market fluctuations. The following introduces four yield products based on stablecoins for reference.

Please note that this article is for reference only and does not constitute investment advice. Investors should assess risks and make their own decisions.

Spark Saving USDC (Ethereum)

Users can connect their wallets through the Spark platform and choose the Savings USDC product to deposit USDC.

The source of income mainly comes from the Sky savings interest rate ( SSR ), generated by cryptocurrency mortgage loan fees, US Treasury investments, and providing liquidity to other platforms. USDC is exchanged for USDS at a 1:1 ratio through Sky PSM and deposited into the SSR vault to earn income, and the value of the sUSDC token increases with the accumulation of earnings.

Risk Assessment: Low. USDC has high stability, and multiple audits reduce the risk of smart contracts. However, attention should be paid to the potential impact of market fluctuations on liquidity.

Native Stablecoin Liquidity Pool of a Public Chain

Users can access the official website of the public chain, connect a compatible wallet, select the stablecoin pool on the specified page, and deposit the corresponding tokens to provide liquidity. Users receive LP tokens, which can be staked in the rewards vault to earn additional income.

The sources of income include governance token rewards and transaction fee sharing within the pool. This public chain adopts an innovative consensus mechanism to enhance network security and ecological vitality by incentivizing liquidity providers.

Risk Assessment: Low to Moderate. The pool consists entirely of stablecoins, which have lower price volatility risks. However, rewards depend on validator allocations and governance decisions, and may fluctuate due to emission adjustments.

Some DEX V4 version USDC-USDT0 liquidity pool

Users can connect their wallets through the aggregation platform and deposit USDC or USDT into the designated products to provide liquidity for the DEX V4 version.

The source of income mainly comes from platform token incentives.

Risk assessment: Low to moderate. The USDC/USDT pool is a stablecoin pair, with lower price volatility risk, but be aware of smart contract risks and the potential decline in returns after the incentive period ends.

USDC Lending Market on a Certain Layer 1 Public Chain

Users can access the official website of the market, connect a compatible wallet, select the USDC pool on the Markets page, and deposit USDC to participate in the supply. Users will receive supply certificates, and earnings will accumulate in real-time.

The sources of income include USDC supply interest and additional token rewards. This market is integrated with the stablecoin protocol on the public chain, providing deposit receipt tokens.

Risk Assessment: Low to Moderate. USDC has high stability, but attention should be paid to the smart contract risks within the ecosystem and the impact of the redemption mechanism for additional reward tokens on yields.

Summary

During times of market turbulence, stablecoin yield products can provide investors with a relatively safe haven. The aforementioned products each have their own characteristics, and investors can choose based on their risk preferences and investment goals. But please remember, all investments carry risks, and it is essential to carefully assess and manage those risks.